Welcome to Joe Knows Mortgages MINUTE, where we answer your mortgage questions.
On this week’s Joe Knows Mortgages MINUTE, we answer the question:
What is a conventional loan?
A Conventional Loan is any loan that is not a government loan. An example of a government loan would be a VA loan, an FHA loan, or a USDA loan. These loans are all guaranteed or insured by the government.
There are two types of conventional loans: A conforming loan and a non-conforming loan.
A conforming loan would be those that meet the guidelines of Fannie Mae and Freddie Mac.
An example of a non-conforming loan would be a jumbo loan, or a bank portfolio loan, basically anything that does not meet Fannie and Freddie guidelines.
While this information can get very confusing, the best thing to do would be to contact a Mortgage Loan Originator at Morgan Financial to review your options and choose one best suited for your specific situation.
Do you have a home loan related question that you want answered? We want to hear from you!
All you have to do is submit your question and it may be chosen for our next “Joe Knows Mortgages MINUTE” which we showcase on Mondays.
All questions will be replied to, so please submit your question below.